Dollar rises as US-Iran tensions escalate in Middle East

The US dollar posted a slight gain against most major currencies at the start of Asian trading on Monday, amid escalating conflict in the Middle East, rising oil prices, and continued fragile investor confidence following last week's market turmoil, according to Reuters.

The dollar rose 0.1 percent against the Japanese yen to 162.48 yen, its strongest level since July 9, as geopolitical tensions prompted investors to seek safe-haven assets.

The euro slipped 0.1 percent to $1.1426, while the British pound was steady at $1.3445. The Australian dollar fell 0.1 percent to $0.6975, and the New Zealand dollar dropped 0.2 percent to $0.5833.

Analysts at Westpac wrote in a research note, "Foreign exchange markets were relatively calm, with the US dollar generally stable, while the Australian dollar weakened against the US dollar and most major currencies."

They added, "Market sentiment continued to deteriorate as concerns over semiconductor company valuations weighed on risk appetite, while tensions in the Middle East escalated after Iran suspended its commitments under the interim peace agreement."

Markets still expect the US Federal Reserve to keep interest rates unchanged at its upcoming meeting on July 29.

The US dollar index, which measures the greenback against a basket of six major currencies, rose 0.1 percent to 100.84.

In cryptocurrencies, Bitcoin rose 0.2 percent to $64,637.89, while Ether gained 0.2 percent to $1,869.72.